[INFINOX] NFP - It is incredible to say it, but 559,000 jobs added in May comes as a disappointment.
Traders positioning for the FOMC signaling a tightening of monetary policy will have been left disappointed by another miss on the crucial US Non-farm Payrolls.
This is the second successive month with a sizable miss, although not of the manner of the April report which will go down as one of the biggest disappointments in payrolls history.
Coming after the ADP employment data showed almost +1m jobs added, the official Bureau of Labor Statistics data paints a far more sobering view of the labor market.
It would appear that the worrying deterioration in an expansion announced in the employment components of manufacturing and services sectors in the ISM have played a role in the payrolls disappointment.
The Federal Reserve will not be swayed by one statistic, however, given the worsening of the participation rate too, this will likely give some of the FOMC hawks pauses for thought. It may also cool the narrative that may have been swelling amongst the FOMC to push ahead sooner with taper talk on QE purchases.
The payrolls disappointment also could act to nip a building USD rebound in the bud.
The market reaction in the hours ahead could be crucial for the dollar rebound.
If sentiment turns against the dollar, the nascent recovery of recent days could quickly reverse. However, if USD can ride out the storm and manage to stem any selling off the back of this data, then the growing near term recovery could gather pace.
DATA: 14:30 *(US) MAY CHANGE IN NONFARM PAYROLLS: +559K V +674KE - Change in Private Payrolls: +492K v +610Ke - Change in Manufacturing Payrolls: +23K v +25Ke - Birth-Death Adjustment (unadj): +218K v +298K prior - Prior Change in Nonfarm Payrolls revised higher from +266K to +278K - Prior Change in Private Payrolls revised higher from +218K to +219K - Prior Change in Manufacturing Payrolls revised lower from -18K to -32K **Reminder: President Biden to comment on May jobs report at 10:15 ET (14:15 GMT) Related ( EUR/USD USD/JPY GLD IAU USO JPY/USD SPY IYR XLF XLU JOBSX GDXJ IJR VNQ FXY ) - Source TradeTheNews.com